Magma Fincorp Limited, one of India's leading retail asset financing companies reported a 56% jump in revenue for the quarter ended 30 September 2008. The company recorded Rs 153.67 crore in total revenue against Rs 98.80 crore registered during the corresponding period last year. Despite flat industry sales due to higher interest rates and inflation, the Company registered an impressive 27% growth in disbursals at Rs 876 crore during the quarter under review, against Rs 690 crore last year. The company's H1 2008-09 disbursals stood at Rs 1902 crore, 36% higher than the corresponding period of last year. Assets under Management also crossed Rs 8600 crore during the period under review.

Commenting on the performance, Sanjay Chamria, Vice Chairman & Managing Director said, "I am happy to share that despite external factors severely impacting the industry performance, Magma has been able to continue the steady growth curve with a healthy performance in the quarter. The highlight of Magma's performance in the last quarter was strong collection achievement, more so considering the industry is finding delinquency difficult to manage.

During Q2 FY2009, the Company's disbursements grew faster than the industry growth in asset finance business, demonstrating the robustness of our business model. Through a prudent mix of various products, we have increased revenue by 56%. Although there is a marginal increase in Profit Before Tax, the Profit After Tax and Deferred Tax of Rs 11.33 crore is lower than the corresponding quarter of last fiscal (Rs 16.31 crore) due to change in company policy of provisioning for Tax and Deferred Tax, which upto FY 2008 was considered only at year-end.

We, at Magma, have repeatedly displayed the ability to deliver healthy results, even in extremely variable and challenging market conditions and we expect to continue this momentum going forward."

Magma's growth in disbursements was driven by good performance in the car and utility vehicle as well as the construction equipment segments. Disbursements in the construction equipment business grew 32% to Rs. 232 crore during the quarter compared to Rs. 175 crore for the corresponding quarter last year. Car and utility vehicle segment was also a key growth driver during the quarter. Total disbursements in this segment amounted to Rs. 216 crore in Q2 FY2009, recording an increase of 25%. Tie-ups with Maruti Suzuki, Hyundai, Mahindra & Mahindra and General Motors and penetration into urban markets have enabled Magma to perform strongly in this segment, despite industry remaining flat during Q2 of FY2009.

Magma continued to hold its share in the commercial vehicle segment in the face of marginal de-growth in commercial vehicle sales. Total disbursements in the commercial vehicle segment marginally increased to Rs. 297 crore in Q2 FY2009 versus Rs. 291 crore for Q2 FY2008.

For further information, please contact:

Kaushik Sinha
AVP - Corporate Communications & Admin
Magma Fincorp Limited